Wolfspeed (NYSE:WOLF) Shares Up 7.2% - Should You Buy?

Key Points

• Wolfspeed shares rose 7.2% in mid-day trading, reaching as high as $36.90 before settling near $36.77. Trading volume was far below average, with about 515,000 shares changing hands versus a 4.44 million daily average.
• Recent analyst sentiment remains cautious: the stock has a consensus Hold rating and an average price target of $20.00, with several firms reiterating sell-related views. The company also reported mixed quarterly results, beating EPS and revenue estimates but posting a 19% year-over-year revenue decline.
• Institutional investors have been active in the name, with firms like Goldman Sachs and UBS AM significantly increasing their stakes. Wolfspeed continues to focus on silicon carbide and gallium nitride semiconductors for growth markets such as EVs, renewable energy, defense, and telecom.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares traded up 7.2% during mid-day trading on Wednesday . The stock traded as high as $36.90 and last traded at $36.7680. Approximately 515,296 shares traded hands during trading, a decline of 88% from the average session volume of 4,443,301 shares. The stock had previously closed at $34.31.

Analysts Set New Price Targets

WOLF has been the topic of several recent research reports. Wall Street Zen raised shares of Wolfspeed from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Wolfspeed in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $20.00.

Wolfspeed Trading Down 0.5%

The company has a market capitalization of $1.77 billion and a price-to-earnings ratio of -3.23. The firm's 50 day simple moving average is $51.68 and its 200-day simple moving average is $30.93.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($3.26) earnings per share (EPS) for the quarter, topping the consensus estimate of ($3.78) by $0.52. The firm had revenue of $150.20 million for the quarter, compared to analysts' expectations of $150.00 million. The company's revenue for the quarter was down 19.0% on a year-over-year basis. During the same period in the prior year, the company earned ($0.72) earnings per share.

Institutional Trading of Wolfspeed

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. lifted its stake in shares of Wolfspeed by 176.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after purchasing an additional 881,603 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Wolfspeed by 94.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock valued at $5,718,000 after purchasing an additional 906,968 shares during the period. WINTON GROUP Ltd bought a new position in Wolfspeed in the 2nd quarter worth approximately $47,000. Ilex Capital Partners UK LLP lifted its stake in shares of Wolfspeed by 499.1% in the 2nd quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company's stock worth $265,000 after acquiring an additional 554,587 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Wolfspeed in the 2nd quarter worth approximately $34,000.

Wolfspeed Company Profile

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.